Footsie gains momentum on day of solid gains for market

The re-opening of European bourses after the May Day holiday and the stunning about-turn in the Dow Jones Industrial Average on Wednesday evening brought a welcome increase in volume in London's equity market and gave an equally welcome boost to recently flagging sentiment.

Other factors behind the solid showing by the FTSE 100 index were the firmness in the market's super-heavyweight sectors - the oils, the pharmaceuticals, banks and telecoms - and the absence of any nasty surprises among individual stocks.

The FTSE 100 index gathered momentum throughout the day, making a strong dash at the 5,200 and only just failing to reach that level, peaking at 5,192.7, before coming off to close a net 48.6 better at 5,174.1.

The FTSE 250, meanwhile, raced up 48.7 to 6,164.9, fuelled by some exceptional gains in the second-ranking telecoms and related issues, such as Colt Telecom, Spirent and Kingston Communications. Transport stocks moved higher in the wake of well-received numbers from National Express. The FTSE SmallCap added 8.6 at 2,579.5, while the Techmark 100, which hit a record closing low only two sessions ago, jumped 18.85 to 1,074.18.

There were no significant domestic economic data to disturb the market mood, while the European Central Bank's decision to leave E12 rates on hold came as no surprise. In the US, factory orders rose 0.4 per cent, in line with expectations.

Wall Street's opening yesterday afternoon saw the Dow move ahead again before dipping as London closed. And the Nasdaq was not impressive. But those performances looked to have little impact in London.

Dealers are now focusing on two items expected later today: the US non-farm payroll report for April and the speech by Mr Alan Greenspan, chairman of the US Federal Reserve, to the 2002 Financial Markets Conference at Sea Island.

The non-farm payroll report is expected to show another increase in job creation; the economics team at Dresdner Kleinwort Wasserstein forecasts a rise of 120,000, well ahead of the consensus figure of 60,000.

Looking further out, next week brings interest rate decisions from both sides of the Atlantic.